Making a will
Typically, people like to think about death about as much as they like root canal treatment. But - especially if you have a family - making a watertight will could spare loved ones months of painful legal and financial wranglings when they are already at their lowest ebb.
Yet staggeringly, according to charity Will Aid, 60% of adults in the UK do not have an up-to-date will. Half (50%) say they simply haven't got around to it, whilst 26% consider themselves too young and almost 23% believe they have no possessions or money to leave. This is despite the fact that 17% have themselves encountered problems with receiving an inheritance.
Where there's a will there's a way
Rising divorce rates and more family units involving second marriages and children from previous relationships, means that setting down 'what goes to who' is, these days, more important than ever.
Similarly, if you are unmarried and your long term partner dies without having made a will you could end up with nothing at all. This is because when dying intestate (without a will) it falls to the State to decide what happens to your assets - and unmarried partners are back of the queue. Only if you are registered as joint owners on your property, will your partner's share of the home automatically pass to you. And, even more galling - if you die intestate with no surviving kin everything you own will go to the state.
A taxing job
Once you have found the motivation to make a will, you'll need some know-how. For example, in spite of recent house price falls, more residential properties than ever now fall into the inheritance tax bracket which, for the tax year 2009/2010 kicks in at £325,000. It could also be the case that individuals also have investment properties or even homes abroad.
This is why writing your will tax-efficiently is crucial - and probably also why the vast majority (65%) of people appoint a solicitor for the purpose, according to Will Aid. However a member of voluntary body, the Institute of Professional Willwriters is just as good. Its fee-paying members must pass a specific exam as well as receive further training every 12 months so consumers know they are getting a professional.
DIY wills
You can also write your own will, using a DIY kit that can be bought online or from a high street stationer. .Just 7% of people opt for this route, according to Will Aid.
A DIY will-writing kit will require the signatures of two witnesses (neither of whom can be beneficiaries of the will) and an assigned executor who will be responsible for distributing your assets after your death. Be sure to choose an executor who is a close friend or family member and, preferably, younger than you.
Life insurance
As well as having a will in place on your death, you can help relinquish financial worries for your family by getting life insurance. Depending on your age and health, premiums could be a lot cheaper than you think. Get a life insurance quote here.
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